8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 114

Gold Price Prediction Guide

For

A LaymanHow To Predict Gold Future Price with Simple Algebraic Maths

Asav Patel

983120983141983154983155983151983150983137983148 983110983145983150983137983150983139983141 983106983148983151983143983143983141983154 983105983144983149983141983140983137983138983137983140 983113983150983140983145983137

983106983148983151983143983098 983159983159983159983117983161983114983151983157983154983150983141983161983124983151983106983145983148983148983145983151983150983137983145983154983141983107983148983157983138983139983151983149

983110983151983154983157983149983098 983159983159983159983113983150983158983141983155983156983156983137983139983151983149

983109983085983149983137983145983148983098 9831379831559831379831584983157983104983143983149983137983145983148983139983151983149

983113983150983158983141983155983156983156983137983139983151983149

983105 983120983141983154983155983151983150983137983148 983110983145983150983137983150983139983141 983110983151983154983157983149

983108983145983155983139983157983155983155 983109983158983141983154983161983156983144983145983150983143 983137983138983151983157983156

983110983145983150983137983150983139983145983137983148 983120983148983137983150983150983145983150983143991270

983117983161983114983151983157983154983150983141983161983124983151983106983145983148983148983145983151983150983137983145983154983141983107983148983157983138983107983151983149

983113983150983140983145983137991257983155 983116983141983137983140983145983150983143 983120983141983154983155983151983150983137983148 983110983145983150983137983150983139983141

983106983148983151983143

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 214

Copyright Notice

991266 983209 2011 983138983161 983117983161983114983151983157983154983150983141983161983124983151983106983145983148983148983145983151983150983137983145983154983141983107983148983157983138983139983151983149 amp 983113983150983158983141983155983156983156983137983139983151983149 983105983148983148 983122983145983143983144983156983155 983122983141983155983141983154983158983141983140

991266 983107983151983152983161983154983145983143983144983156 983144983151983148983140983141983154 983145983155 983148983145983139983141983150983155983145983150983143 983156983144983145983155 983141983106983151983151983147 983157983150983140983141983154 983156983144983141 983107983154983141983137983156983145983158983141 983107983151983149983149983151983150983155 983116983145983139983141983150983155983141 983105983156983156983154983145983138983157983156983145983151983150 30

991266 983120983148983141983137983155983141 983142983141983141983148 983142983154983141983141 983156983151 983152983151983155983156 983156983144983145983155 983141983106983151983151983147 983151983150 983161983151983157983154 983138983148983151983143 983141983149983137983145983148 983145983156 983155983141983150983140 983145983156 983156983151 983161983151983157983154 983142983154983145983141983150983140983155 983151983154 983148983145983150983147 983156983151 983145983156

983159983145983156983144 983159983144983151983149983141983158983141983154 983161983151983157 983138983141983148983145983141983158983141 983159983145983148983148 983138983141983150983141983142983145983156 983142983154983151983149 983154983141983137983140983145983150983143 983145983156

WARNING I am not any commodity expert or any kind of finance guru I am just

a common man like you And the calculations and predictions inside this eBook are

my own thoughts This eBook is only for the educational amp entertainment purpose

If you are looking for professional advise in gold commodity futures than this eBook

is not for youhellip

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 314

983113983150983140983141983160

1 983124983144983141 983143983151983148983140 983155983156983137983150983140983137983154983140

2 983124983144983141 983125983123 983149983151983150983141983156983137983154983161 983138983137983155983141

3 983111983151983148983140 983152983154983145983139983141983098 983117983161983156983144983155 amp 983124983154983157983156983144

4 983127983144983141983150 983111983151983148983140 983152983154983145983139983141 983143983151983141983155 983157983152983103

983093 983127983144983141983150 983111983151983148983140 983152983154983145983139983141 983139983151983149983141983155 983140983151983159983150983103

983094 983107983137983148983139983157983148983137983156983145983151983150 983151983142 983143983151983148983140 983142983157983156983157983154983141 983152983154983145983139983141

983095 983125983123 983147983141983161 983154983137983156983141983155 amp 983143983151983148983140 983152983154983145983139983141

983096 983115983141983161 983150983151983156983141983155 amp 983155983157983149983149983137983154983161

983097 983105983138983151983157983156 983156983144983141 983137983157983156983144983151983154

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 414

983124983144983141 983111983151983148983140 983123983156983137983150983140983137983154983140

It is very important tounderstand The GoldStandard before predictingthe future price of thegold In laymanrsquos languagethe gold standard was theera before 1971 when theentire money supply (banknotes) of the world was

every $ 35 the USgovernment had to store 1ounce of gold

Americans did not like thiskind of money supply(Gold backed money) andthatrsquos why in 1971 they

removed the gold standardand it was the historical

any intrinsic activity in itAfter 1971 USA told theentire world in thesophisticated language thatthey will now havemonopoly on worldrsquosmoney supply and theycan now print as muchmoney as they want

gold

So before 1971 suppose if thegovernment wanted to print new money in theeconomy it had to store

that much amount of gold before printing any moneySay for example gold pricewas $ 35 per ounce inUSA at that time So for

was manipulated by theUS government It was thefirst time gold detachedfrom the bank notes andthe new form of money is

now known as CurrencyBut still today the real money

is gold The bank notes inyour pocket are just pieceof papers without having

economy

And today all the countries inthis world have removedthe gold standard Our this bank notes are also known

as ldquoFiat Moneyrdquo

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 514

983124983144983141 983125983123 983117983151983150983141983156983137983154983161 983106983137983155983141

In laymanrsquos language

Monetary base means themoney in circulationMonetary base meansldquoMoney Supplyrdquo And theUS Monetary base is thetotal amount of money printed by the governmentof USA time to time

You can see in the chart that

up to 2007 the USmonetary base was $ 800Billion But in 2011 its US$ 26 Trillion ($ 2600Billion) Means in just 4years USA has printedliterally $ 1800 Billion ($18 Trillion) out of thin air

You can also see that after

1971 the US monetary base started exploding because in 1971 USAremoved the gold standardand started printing moneyaccording to their need

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 614

983111983151983148983140 983120983154983145983139983141 983117983161983156983144983155 amp 983124983154983157983156983144

In India there are lots ofmyths about gold pricemovements Here arethose myths but none ofthem are the truths

MYTHS

gold will crash becausedemand will be less

- Gold price has to go up because Indians are goldconsumers

- Gold price is Rs10000

TRUTH

- All of the above are themyths The truth is that allof the above factors

impact not more than 1on Goldrsquos price The truth

- Diwali is near so the gold price will hike because people will consume moregold

- Marriage season is comingso the price of gold willincrease because peoplewill buy more gold

- After Diwali the price of

per 10 Grams This is toocostly so people will stop buying and the price willfall

s t at go pr ce goes upand down according to thesize of the US monetary base and not because ofthe above factors Readfurther that how exactly

gold price moves up anddown

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 214

Copyright Notice

991266 983209 2011 983138983161 983117983161983114983151983157983154983150983141983161983124983151983106983145983148983148983145983151983150983137983145983154983141983107983148983157983138983139983151983149 amp 983113983150983158983141983155983156983156983137983139983151983149 983105983148983148 983122983145983143983144983156983155 983122983141983155983141983154983158983141983140

991266 983107983151983152983161983154983145983143983144983156 983144983151983148983140983141983154 983145983155 983148983145983139983141983150983155983145983150983143 983156983144983145983155 983141983106983151983151983147 983157983150983140983141983154 983156983144983141 983107983154983141983137983156983145983158983141 983107983151983149983149983151983150983155 983116983145983139983141983150983155983141 983105983156983156983154983145983138983157983156983145983151983150 30

991266 983120983148983141983137983155983141 983142983141983141983148 983142983154983141983141 983156983151 983152983151983155983156 983156983144983145983155 983141983106983151983151983147 983151983150 983161983151983157983154 983138983148983151983143 983141983149983137983145983148 983145983156 983155983141983150983140 983145983156 983156983151 983161983151983157983154 983142983154983145983141983150983140983155 983151983154 983148983145983150983147 983156983151 983145983156

983159983145983156983144 983159983144983151983149983141983158983141983154 983161983151983157 983138983141983148983145983141983158983141 983159983145983148983148 983138983141983150983141983142983145983156 983142983154983151983149 983154983141983137983140983145983150983143 983145983156

WARNING I am not any commodity expert or any kind of finance guru I am just

a common man like you And the calculations and predictions inside this eBook are

my own thoughts This eBook is only for the educational amp entertainment purpose

If you are looking for professional advise in gold commodity futures than this eBook

is not for youhellip

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 314

983113983150983140983141983160

1 983124983144983141 983143983151983148983140 983155983156983137983150983140983137983154983140

2 983124983144983141 983125983123 983149983151983150983141983156983137983154983161 983138983137983155983141

3 983111983151983148983140 983152983154983145983139983141983098 983117983161983156983144983155 amp 983124983154983157983156983144

4 983127983144983141983150 983111983151983148983140 983152983154983145983139983141 983143983151983141983155 983157983152983103

983093 983127983144983141983150 983111983151983148983140 983152983154983145983139983141 983139983151983149983141983155 983140983151983159983150983103

983094 983107983137983148983139983157983148983137983156983145983151983150 983151983142 983143983151983148983140 983142983157983156983157983154983141 983152983154983145983139983141

983095 983125983123 983147983141983161 983154983137983156983141983155 amp 983143983151983148983140 983152983154983145983139983141

983096 983115983141983161 983150983151983156983141983155 amp 983155983157983149983149983137983154983161

983097 983105983138983151983157983156 983156983144983141 983137983157983156983144983151983154

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 414

983124983144983141 983111983151983148983140 983123983156983137983150983140983137983154983140

It is very important tounderstand The GoldStandard before predictingthe future price of thegold In laymanrsquos languagethe gold standard was theera before 1971 when theentire money supply (banknotes) of the world was

every $ 35 the USgovernment had to store 1ounce of gold

Americans did not like thiskind of money supply(Gold backed money) andthatrsquos why in 1971 they

removed the gold standardand it was the historical

any intrinsic activity in itAfter 1971 USA told theentire world in thesophisticated language thatthey will now havemonopoly on worldrsquosmoney supply and theycan now print as muchmoney as they want

gold

So before 1971 suppose if thegovernment wanted to print new money in theeconomy it had to store

that much amount of gold before printing any moneySay for example gold pricewas $ 35 per ounce inUSA at that time So for

was manipulated by theUS government It was thefirst time gold detachedfrom the bank notes andthe new form of money is

now known as CurrencyBut still today the real money

is gold The bank notes inyour pocket are just pieceof papers without having

economy

And today all the countries inthis world have removedthe gold standard Our this bank notes are also known

as ldquoFiat Moneyrdquo

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 514

983124983144983141 983125983123 983117983151983150983141983156983137983154983161 983106983137983155983141

In laymanrsquos language

Monetary base means themoney in circulationMonetary base meansldquoMoney Supplyrdquo And theUS Monetary base is thetotal amount of money printed by the governmentof USA time to time

You can see in the chart that

up to 2007 the USmonetary base was $ 800Billion But in 2011 its US$ 26 Trillion ($ 2600Billion) Means in just 4years USA has printedliterally $ 1800 Billion ($18 Trillion) out of thin air

You can also see that after

1971 the US monetary base started exploding because in 1971 USAremoved the gold standardand started printing moneyaccording to their need

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 614

983111983151983148983140 983120983154983145983139983141 983117983161983156983144983155 amp 983124983154983157983156983144

In India there are lots ofmyths about gold pricemovements Here arethose myths but none ofthem are the truths

MYTHS

gold will crash becausedemand will be less

- Gold price has to go up because Indians are goldconsumers

- Gold price is Rs10000

TRUTH

- All of the above are themyths The truth is that allof the above factors

impact not more than 1on Goldrsquos price The truth

- Diwali is near so the gold price will hike because people will consume moregold

- Marriage season is comingso the price of gold willincrease because peoplewill buy more gold

- After Diwali the price of

per 10 Grams This is toocostly so people will stop buying and the price willfall

s t at go pr ce goes upand down according to thesize of the US monetary base and not because ofthe above factors Readfurther that how exactly

gold price moves up anddown

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 314

983113983150983140983141983160

1 983124983144983141 983143983151983148983140 983155983156983137983150983140983137983154983140

2 983124983144983141 983125983123 983149983151983150983141983156983137983154983161 983138983137983155983141

3 983111983151983148983140 983152983154983145983139983141983098 983117983161983156983144983155 amp 983124983154983157983156983144

4 983127983144983141983150 983111983151983148983140 983152983154983145983139983141 983143983151983141983155 983157983152983103

983093 983127983144983141983150 983111983151983148983140 983152983154983145983139983141 983139983151983149983141983155 983140983151983159983150983103

983094 983107983137983148983139983157983148983137983156983145983151983150 983151983142 983143983151983148983140 983142983157983156983157983154983141 983152983154983145983139983141

983095 983125983123 983147983141983161 983154983137983156983141983155 amp 983143983151983148983140 983152983154983145983139983141

983096 983115983141983161 983150983151983156983141983155 amp 983155983157983149983149983137983154983161

983097 983105983138983151983157983156 983156983144983141 983137983157983156983144983151983154

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 414

983124983144983141 983111983151983148983140 983123983156983137983150983140983137983154983140

It is very important tounderstand The GoldStandard before predictingthe future price of thegold In laymanrsquos languagethe gold standard was theera before 1971 when theentire money supply (banknotes) of the world was

every $ 35 the USgovernment had to store 1ounce of gold

Americans did not like thiskind of money supply(Gold backed money) andthatrsquos why in 1971 they

removed the gold standardand it was the historical

any intrinsic activity in itAfter 1971 USA told theentire world in thesophisticated language thatthey will now havemonopoly on worldrsquosmoney supply and theycan now print as muchmoney as they want

gold

So before 1971 suppose if thegovernment wanted to print new money in theeconomy it had to store

that much amount of gold before printing any moneySay for example gold pricewas $ 35 per ounce inUSA at that time So for

was manipulated by theUS government It was thefirst time gold detachedfrom the bank notes andthe new form of money is

now known as CurrencyBut still today the real money

is gold The bank notes inyour pocket are just pieceof papers without having

economy

And today all the countries inthis world have removedthe gold standard Our this bank notes are also known

as ldquoFiat Moneyrdquo

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 514

983124983144983141 983125983123 983117983151983150983141983156983137983154983161 983106983137983155983141

In laymanrsquos language

Monetary base means themoney in circulationMonetary base meansldquoMoney Supplyrdquo And theUS Monetary base is thetotal amount of money printed by the governmentof USA time to time

You can see in the chart that

up to 2007 the USmonetary base was $ 800Billion But in 2011 its US$ 26 Trillion ($ 2600Billion) Means in just 4years USA has printedliterally $ 1800 Billion ($18 Trillion) out of thin air

You can also see that after

1971 the US monetary base started exploding because in 1971 USAremoved the gold standardand started printing moneyaccording to their need

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 614

983111983151983148983140 983120983154983145983139983141 983117983161983156983144983155 amp 983124983154983157983156983144

In India there are lots ofmyths about gold pricemovements Here arethose myths but none ofthem are the truths

MYTHS

gold will crash becausedemand will be less

- Gold price has to go up because Indians are goldconsumers

- Gold price is Rs10000

TRUTH

- All of the above are themyths The truth is that allof the above factors

impact not more than 1on Goldrsquos price The truth

- Diwali is near so the gold price will hike because people will consume moregold

- Marriage season is comingso the price of gold willincrease because peoplewill buy more gold

- After Diwali the price of

per 10 Grams This is toocostly so people will stop buying and the price willfall

s t at go pr ce goes upand down according to thesize of the US monetary base and not because ofthe above factors Readfurther that how exactly

gold price moves up anddown

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 414

983124983144983141 983111983151983148983140 983123983156983137983150983140983137983154983140

It is very important tounderstand The GoldStandard before predictingthe future price of thegold In laymanrsquos languagethe gold standard was theera before 1971 when theentire money supply (banknotes) of the world was

every $ 35 the USgovernment had to store 1ounce of gold

Americans did not like thiskind of money supply(Gold backed money) andthatrsquos why in 1971 they

removed the gold standardand it was the historical

any intrinsic activity in itAfter 1971 USA told theentire world in thesophisticated language thatthey will now havemonopoly on worldrsquosmoney supply and theycan now print as muchmoney as they want

gold

So before 1971 suppose if thegovernment wanted to print new money in theeconomy it had to store

that much amount of gold before printing any moneySay for example gold pricewas $ 35 per ounce inUSA at that time So for

was manipulated by theUS government It was thefirst time gold detachedfrom the bank notes andthe new form of money is

now known as CurrencyBut still today the real money

is gold The bank notes inyour pocket are just pieceof papers without having

economy

And today all the countries inthis world have removedthe gold standard Our this bank notes are also known

as ldquoFiat Moneyrdquo

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 514

983124983144983141 983125983123 983117983151983150983141983156983137983154983161 983106983137983155983141

In laymanrsquos language

Monetary base means themoney in circulationMonetary base meansldquoMoney Supplyrdquo And theUS Monetary base is thetotal amount of money printed by the governmentof USA time to time

You can see in the chart that

up to 2007 the USmonetary base was $ 800Billion But in 2011 its US$ 26 Trillion ($ 2600Billion) Means in just 4years USA has printedliterally $ 1800 Billion ($18 Trillion) out of thin air

You can also see that after

1971 the US monetary base started exploding because in 1971 USAremoved the gold standardand started printing moneyaccording to their need

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 614

983111983151983148983140 983120983154983145983139983141 983117983161983156983144983155 amp 983124983154983157983156983144

In India there are lots ofmyths about gold pricemovements Here arethose myths but none ofthem are the truths

MYTHS

gold will crash becausedemand will be less

- Gold price has to go up because Indians are goldconsumers

- Gold price is Rs10000

TRUTH

- All of the above are themyths The truth is that allof the above factors

impact not more than 1on Goldrsquos price The truth

- Diwali is near so the gold price will hike because people will consume moregold

- Marriage season is comingso the price of gold willincrease because peoplewill buy more gold

- After Diwali the price of

per 10 Grams This is toocostly so people will stop buying and the price willfall

s t at go pr ce goes upand down according to thesize of the US monetary base and not because ofthe above factors Readfurther that how exactly

gold price moves up anddown

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 514

983124983144983141 983125983123 983117983151983150983141983156983137983154983161 983106983137983155983141

In laymanrsquos language

Monetary base means themoney in circulationMonetary base meansldquoMoney Supplyrdquo And theUS Monetary base is thetotal amount of money printed by the governmentof USA time to time

You can see in the chart that

up to 2007 the USmonetary base was $ 800Billion But in 2011 its US$ 26 Trillion ($ 2600Billion) Means in just 4years USA has printedliterally $ 1800 Billion ($18 Trillion) out of thin air

You can also see that after

1971 the US monetary base started exploding because in 1971 USAremoved the gold standardand started printing moneyaccording to their need

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 614

983111983151983148983140 983120983154983145983139983141 983117983161983156983144983155 amp 983124983154983157983156983144

In India there are lots ofmyths about gold pricemovements Here arethose myths but none ofthem are the truths

MYTHS

gold will crash becausedemand will be less

- Gold price has to go up because Indians are goldconsumers

- Gold price is Rs10000

TRUTH

- All of the above are themyths The truth is that allof the above factors

impact not more than 1on Goldrsquos price The truth

- Diwali is near so the gold price will hike because people will consume moregold

- Marriage season is comingso the price of gold willincrease because peoplewill buy more gold

- After Diwali the price of

per 10 Grams This is toocostly so people will stop buying and the price willfall

s t at go pr ce goes upand down according to thesize of the US monetary base and not because ofthe above factors Readfurther that how exactly

gold price moves up anddown

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 614

983111983151983148983140 983120983154983145983139983141 983117983161983156983144983155 amp 983124983154983157983156983144

In India there are lots ofmyths about gold pricemovements Here arethose myths but none ofthem are the truths

MYTHS

gold will crash becausedemand will be less

- Gold price has to go up because Indians are goldconsumers

- Gold price is Rs10000

TRUTH

- All of the above are themyths The truth is that allof the above factors

impact not more than 1on Goldrsquos price The truth

- Diwali is near so the gold price will hike because people will consume moregold

- Marriage season is comingso the price of gold willincrease because peoplewill buy more gold

- After Diwali the price of

per 10 Grams This is toocostly so people will stop buying and the price willfall

s t at go pr ce goes upand down according to thesize of the US monetary base and not because ofthe above factors Readfurther that how exactly

gold price moves up anddown

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 714

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983111983151983141983155 983125983152983103

Understanding the ldquoGoldStandardrdquo and The USMonetary base helps usto understand the pricemovements of the gold

with fair accuracy Since1971 there is not any

when the US governmentwill print more dollars(Fiat money) it willdilute the purchasing

power of the existing

dollars in the circulationmaking dollar weak and

be more dollars in handsof people and investorsto buy gold at higher

prices

Actually its not the price of

gold going up butactually itrsquos the value of

connect on etween t eUS Dollar amp The GoldBut still the gold is realmoney so its price hasstrong correlation with

the monetary base(money supply)

So from the previous twoconcept a school goingkid can also say that

go strong

Whenever US monetary base will increase therewill be more dollars inthe world to chase that

same amount of gold andthatrsquos why the price ofthe gold will go upWhen US monetary basewill increase there will

dollar (and othercurrencies in this world)going down

So the gold price does nothave anything to do with

the popular mythsmentioned before

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 814

983127983144983141983150 983111983151983148983140 983120983154983145983139983141 983107983151983149983141983155 983108983151983159983150983103

Obviously whengovernments from allaround the world printnew currencies (so calledmoney) the gold price

goes up because newly printed currencies dilute

and the dollar becomestrong because now thereare less dollars in theworld to chase that sameamount of gold thus

crashing the price ofgold

simple logic Rememberthat the US Monetary

base (money supply) hasa strong correlation withthe price of gold and you

will be mastered in predicting the gold futuret e purc as ng power othe existing currencies inthe circulation The viceversa is also true

Means when the US

government absorbs thisexcessive liquidity(Printed money) from theeconomy the USmonetary base shrinks

So whenever the USmonetary base shrinksthe price of gold goesdown This is becausewhen USA will shrink its

money supply people(Investors) will have lessmoney to buy that goldwhich will crash the

price of gold It is as

pr ces

So it is not that the marriageseason and Diwali aregone so the price of goldwill crash Gold price is

absolutely related to theUS monetary base andnothing else

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 914

983107983137983148983139983157983148983137983156983145983151983150 983151983142 983111983151983148983140 983110983157983156983157983154983141 983120983154983145983139983141

Calculation of gold future

price is not a rocket

science Actually we are

not predicting the future

price of the gold but

actually we are

the US gold reserve

According to World Gold

Council report (March

2011) the US has 86735

Tonnes of Gold in

reserve The US

basically need the 3

things

1) The most recent US gold

reserve data 2) The most

recent US monetary base

size amp 3) The current

of a dollar in comparison

to the gold according to

the gold standard

This is a simple algebraic

maths that a school goingkid can do So let us

calculate the fair value of

a dollar in comparison to

onetary ase n une

2011 was US $ 26

Trillion ($ 2600 Billion)

ow the price of gold in

August 2011 is US $

1784 per 1 ounce ofGold So everytime when

ou want to calculate the

future gold price you

o pr ce n o ars per

ounce

All you need the above 3

things to predict the gold

price with fair accuracy

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1014

bull The US Monetary Base (Aug 2011) is US $ 26 Trillion ($ 2600 Billion)

bull The Gold Price in Aug 2011 is US $ 1784 per ounce amp

bull The US Reserve Gold in March 2011 was 8673 Tonnes

So

8673 Tonnes Gold = $ 2600 Billion ($ 26 Trillion)

So 01 Tonne Gold = $ 029978 Billion = $ 29978 Million

Now 1 Tonne = 1000 KG = 1000000 Grams

ow unce = rams =

Now 311035 Grams = 1 Ounce

Sp 1000000 Grams = 3215072 Ounce So 1 Tonne = 3215072 Ounce

So Approx 1 Tonne = 32000 Ounce

Now 32000 Ounce (1 Tonne) Gold = $ 29978 Million

So 1 Ounce Gold = $ 0009368125 Million = $ 9368125

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1114

So 1 Ounce Gold = $ 9368125

The current price (Aug 2011) of Gold is $ 1784 per 1 Ounce

The difference is $ 7584125

So The Gold price can touch as maximum this much high In Indian Rupees the

gold price is Rs26000 per 10 Grams in Aug 2011 Which can go 525 times

higher means Rs136500 per 10 Gram of Gold and even more if in between

the US government prints more billions and trillions of dollars out of thin air

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1214

983125983123 983115983141983161 983122983137983156983141983155 amp 983111983151983148983140 983120983154983145983139983141

You may ask that then whenexactly the gold pricewill touch this muchhigh Well nobodyknows when Technicallyspeaking right now mostof this newly printedmoney (USD) is sittingas bank reserves Itrsquos on

So how can we say withsurest predictability thatthis newly printed moneywill surely enter into thecirculation Well byanalyzing the keyinterest rates When thekey interest rates arelower it means that the

In laymanrsquos language lowerthe interest rates are themore willing thegovernment is to lendmoney at lowest interestrates and thus this newly

printed money will enterinto circulation and shootup the gold price The

huge banks only Thisnewly printed money hasnot entered intocirculation yet But welltechnically speaking ifall of this money entersinto the circulation thangold price can go thismuch high or evenhigher

want you to borrow thisnewly printed money aylowest interest rates

The key rates are 1) Federal

Funds rate 2) PrimeRate amp 3) USunemployment rate InAug 2011 they are010 325 amp 910

rate are all time low ratesif you compare thehistory During the peakthe Fed fund rate was 5and Prime rate was 8so you can imagine thathow worst the currentsituation (2011) is

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1314

983115983141983161 983118983151983156983141983155 amp 983123983157983149983149983137983154983161

bull ldquoBailoutrdquo is the

sophisticated word

means ldquoPrinting more

moneyrdquo So whenever

you hear this word in the

news papers it means

purchasing power of the

existing money causing

gold price to rice

bull When US Federal fund

rates and prime rates are

very low (Almost near

government increases the

fed fund rates and prime

rates it means that it

wants to absorb the

excessive liquidity from

the world economy to

bull Whenever the US

government wants

people to borrow money

from it at a lower interest

rate it means that thenewly printed money

will enter into the

circulation and dilute the

zero t s a s gn o go

price to go up And

higher unemployment

rate is an associated sign

that this newly printed

money will stay in thecirculation keeping the

gold price up

bull When the US

and the gold weak So it

means that very soon the

gold price will crash

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts

8132019 4 Gold Price Prediction

httpslidepdfcomreaderfull4-gold-price-prediction 1414

983105983138983151983157983156 983156983144983141 983105983157983156983144983151983154

I am Asav Patel a personal finance blogger

living in Ahmedabad city I run my

personal finance blog

MyJourneyToBillionaireClubcom and a

personal finance forumcommunity

Investtacom

My mission is to spread the real financial

this mission I have published several

eBooks covering several personal finance

and financial planning issues You can

download all of my eBooks for FREE from

my online community Investtacom andalso be a part of this community for FREE

If you have any doubts about any concepts

inside any eBook than you can post it in

detail on Investta and I will be more than

happy to discuss everything with you

Past Memories

I started my journey to spread the real financial

education in India since March 2008 when I

joined my PG course at DY Patil Hospital

Kolhapur

The above photos of my laptop and notebook aretaken from my hostel room during 2009-10 I

keep a notebook with me in which I write down

my thoughts and whenever I get free time I

write a blog post or an eBook on these thoughts